8 Mistakes People Make While Choosing a Term Plan

2024-08-02

882 Views

Begin securing your future

Full Name* Please enter correct name Please enter the Full name

Mobile Number* Please enter valid mobile number Please enter Mobile Number

Email* Please enter valid email Please enter Email

I agree that even if my contact number is registered with NDNC / NCPR, I would still want the Company to contact me on the given number and email id for the clarifications/product information sought by me and agree that I have read and understood the Privacy Policy and agree to abide by the same.

...Read more Consent is required

Locate branch

Resume journey

Pay Premium

Live Life More Confidently

Get best insurance from our experts

Name is required Name should be Valid

Mobile Number is required Mobile Number should be Valid

Email is required Email should be Valid

DOB is required DOB should be Valid

Annual Income*

< 3 3-5 5-7 7-10 > 10

Annual Income is required

Please tick to proceed further.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

Term insurance, the simplest and most cost-effective type of life insurance, should be a part of everyone’s financial portfolio. However, the number of people who have actually opted for term insurance in India is on the lower end of the spectrum. Only 1 in every 5 urban Indians has a term plan. A lack of awareness about the basics of term insurance is partially to blame.

While term insurance is a sound financial option, for most individuals to make the most of its features and benefits, one should be thoroughly apprised of and refrain from making some fairly common errors. In building such awareness, one can derive the most benefits from their term plan.

Here are the 8 primary mistakes that you must avoid while taking a term plan.

Selecting a short term In pursuit of the lowest premium, you might select a plan with a short term. However, if one opts for a short term and ends up outliving the term, they would need to renew their old plan or purchase a new one, potentially increasing their premium rates. Put simply, term insurance is lifelong protection for your family, and a plan with a short term does not serve that purpose.

Selecting a lower sum assured A term plan's sum assured should ideally be 10-15 times your monthly income. One might find it tempting to select a lower sum assured owing to the lower premium that comes with it. This would, however, leave your family with an inadequate amount of money in your absence. Selecting a sum assured that fulfills the needs of your family and gives them the financial freedom to sustain their current lifestyle is crucial.

Procrastination Life insurance might not seem like a huge priority for those in the prime of their health. However, the older one gets, the higher the risk of mortality and, thus, the more expensive the term plan. To avail of the lowest premium rates and the best possible coverage, purchasing a term plan early can prove to be beneficial.

Giving insufficient information While applying for term insurance, you would be asked to supply the insurer with certain personal details, including your medical history and lifestyle habits. Not disclosing relevant information during the application

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.